Microeconomics 2007 Paper: Answers/Hints/Solutions to past year papers/Exam of Delhi School of Economics (DSE)

This is the fourth series of solutions for Microeconomics questions asked in DSE Past years papers

Microeconomics 2007

Ans 1. (c) {20,0}

Ans 2. (a) a vertical line

Ans 3 (b) K=3/2L

Ans 4. (c) MR < 0 in such a case.(Apply the formula, MR=P(1+1/ed) )

Ans 5 (a) A,B (Applying WARP)

Ans 8 (a) always reduce borrowing

Ans 21 (c) 1200-488L+72L² -4L³

Ans 22 (d) (i) Rs 4,80,000 (Apply πox+(1-π)oy) and (ii) risk loving

Ans 23 (a) (i) 1km and (ii) Rs 100

Ans 24 (a) some firms will exit the industry but other will remain (At P=ATC, Supply > Demand, so?)

Ans 25 (b) 9 Apples

Ans 26 (a) 3.5 kg (SE = 33.5-30=3.5)

Ans 27 (d) ((0,0),( 8^1/2,2),(3-8^1/2,1)) (After maximization exercise, y1=x1/2^1/2,so?)

Ans 28 (c) Pareto efficient because there is a bound on Agent’s 1 ability to consume

Ans 29 (b) 2^1/2 (Hint : a=2y1/x1)

Ans 30. (b) ((0,0),( 3-48^1/2/5, 3-12^1/2/5), ( 48^1/2/5, 12^1/2/5))

Ans 37 (c) (1+δ)w2>(1+r)w1

Ans 38 (a) goes up

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